Income Taxes:

For the years ended December 31, the total provision (benefit) for income taxes for continuing operations consisted of the following:



	2013			2012			2011
	(In millions)
Current taxes:
U.S. federal	$	(4	)	$	1		$	17
U.S. state	—			1			—
Deferred taxes:
U.S. federal	53			(479		)	171
U.S. state	13			(34		)	30
Total provision (benefit) for income taxes	$	62		$	(511	)	$	218

The provision for income taxes for each of the indicated years was different than the amount computed using the federal statutory rate (35%) for the following reasons:



	2013			2012			2011
	(In millions)
Amount computed using the statutory rate	$	60		$	(495	)	$	217
Increase (decrease) in taxes resulting from:
State and local income taxes, net of federal effect	8			(18		)	10
Valuation allowance, state net of federal	(2		)	—			5
Other	(4		)	2			(14		)
Total provision (benefit) for income taxes	$	62		$	(511	)	$	218

At December 31, the components of our deferred tax asset (liability) were as follows:



	2013			2012
	(In millions)
Deferred tax asset:
Net operating loss carryforwards	$	335		$	213
Alternative minimum tax credit	99			103
Stock-based compensation	25			24
Marketable securities	3			4
Oil and gas properties	59			49
Foreign tax credit	535			421
Commodity derivatives	13			—
Other	6			18
Total deferred tax asset	1,075			832
Deferred tax asset valuation allowances	(584		)	(457		)
Net deferred tax asset	491			375

Deferred tax liability:
Commodity derivatives	—			(44		)
Oil and gas properties	(1,592		)	(1,283		)
Total deferred tax liability	(1,592		)	(1,327		)
Net deferred tax liability	(1,101		)	(952		)
Less: Net current deferred tax asset (liability)	22			(42		)
Net noncurrent deferred tax liability	$	(1,123	)	$	(910	)

As of December 31, 2013 and 2012, we had gross net operating loss (NOL) carryforwards of approximately $1.0 billion and $0.5 billion for federal income tax and $1.7 billion and $1.6 billion for state income tax purposes, respectively, which may be used in future years to offset taxable income. NOL carryforwards of $189 million are subject to annual limitations due to stock ownership changes. We currently estimate that we will not be able to utilize $74 million of our various gross state NOLs because we do not have sufficient estimated future taxable income in the appropriate jurisdictions. To the extent not utilized, the federal NOL carryforwards will begin to expire during the years 2019 through 2033.

As of December 31, 2013 and 2012, we had gross NOL carryforwards for international income tax purposes of approximately $17 million, respectively. We currently estimate that we will not be able to utilize these NOLs because we do not have sufficient estimated future taxable income in the appropriate jurisdictions. As a result, valuation allowances were established for these items in 2005 and 2006.

Utilization of deferred tax assets is dependent upon generating sufficient future taxable income in the appropriate jurisdictions within the carryforward period. Estimates of future taxable income can be significantly affected by changes in oil, gas and NGL prices; estimates of the timing and amount of future production; and estimates of future operating and capital costs. Therefore, no certainty exists that we will be able to fully utilize our existing deferred tax assets.

The change in our deferred tax asset valuation allowance is as follows at December 31:



	2013			2012			2011
	(In millions)
Balance at the beginning of the year	$	(457	)	$	(11	)	$	(6	)
Charged to provision for income taxes:
Malaysia valuation allowance	(15		)	(25		)	—
Foreign tax credit valuation allowance	(114		)	(421		)	—
U.S. state net operating loss carryforwards	2			—			(5		)
Balance at the end of the year	$	(584	)	$	(457	)	$	(11	)

In the fourth quarter of 2013 and 2012, we recorded a $15 million and $25 million valuation allowance for our deferred tax asset in Malaysia, respectively, due to insufficient estimated future taxable income. Also in the fourth quarter of 2013 and 2012, we recorded a valuation allowance related to insufficient estimated future domestic taxable income to fully utilize foreign tax credits of $114 million and $421 million, respectively. The foreign tax credit deferred tax asset is fully offset by a valuation allowance. In 2013, we released $2 million of state valuation allowances due to utilization of the related state NOLs.